Probably was annoying for more like the first three days I'd say, but Teal was launched on like day seven I think and by then there was a lot more spread with some people grinding hard, and a lot of the more casual were reaching 10+ at least and getting to spread out from the newbie areas and even the load.
I recall SRO being super crowded from the ogre/troll contingent after the first couple days, which was kinda cool in a way to see people xp'ing there, some soloing bugs and animals, others doing orc groups and shit. That's a zone which is usually just empty. Same with Lavastorm, people actually going there to find mobs to kill for their level.
But yeah in hindsight the crowds are a selling point and Teal probably went on far too long and was an overreaction. Maybe just make all the newbie yards have crazy short respawn timers for a week or something, I think that was done also but I forget the details.
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